Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Prices for US secondary aluminum smelter scrap moved up or down, depending on grade, during the week. Robust supply has kept prices from rising substantially. However, US smelters are concerned that their current margin gains on finished secondary alloys will not last long with China slated to step back into the market.


The weekly Davis Index for all the aluminum shredder grades trended flat to up on Wednesday. Zorba and Tweak moved up by 0.2¢/lb to 46.5¢/lb delivered US consumer and 49.5¢/lb delivered, respectively, while Twitch held at 55¢/lb delivered on Wednesday.   


The index for Old Cast was higher by 0.2¢/lb at 47¢/lb delivered and Old Sheet decreased by the same amount to 46.1¢/lb delivered US consumer. The Davis Index for high-grade turnings decreased by 0.7¢/lb to 40¢/lb.  


The three-month LME aluminum contract closed at $1,772.50/mt, up by $72.50/mt from $1,700/mt on Sep 30.


The global supply chain could shift again when China becomes active in the market. At that time, the excess capacity of Chinese smelters will weigh heavily on the strength and pricing in the US domestic market.

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